Retargeting: What is it and how does it work?

Retargeting is a way to re-engage with users who have already visited your site or interacted with your brand, showed interest in an offer, but did not perform the desired conversion action. This distinguishes it from targeting, which works with users who are not yet familiar with the brand. Retargeting is sometimes called remarketing.

Retargeting in simple words

From a marketing perspective, not every customer will take the action you want them to take the first time. Some need time to think about the decision, compare with alternatives, or simply wait for the right moment. Retargeting helps remind you of yourself at that “right moment.”

The effectiveness of this tool depends on the arguments the seller uses to return the buyer to the store. For example, if the main objection is the high cost, a discount on the product or service is offered to stimulate purchases.

As a rule, retargeting is cheaper than other types of advertising, its cost is lower. The difference is also due to the fact that the audience it is aimed at is warm, already familiar with the brand, and the likelihood that one of them will make a purchase is higher. In addition, such advertising is targeted, advertising platforms allow you to analyze the user's actions on the site and formulate personal offers for him.

A classic example of an audience for retargeting is people who have selected a product in an online store, added the product to the cart, but did not complete the purchase. With this tool, each user will receive a reminder about the abandoned products or information about similar products in the store and, possibly, complete the checkout.

What is the difference between retargeting and remarketing?

It is important to understand the difference between remarketing and retargeting. It consists in the fact that, in the first case, it is advertising in Google Ads, which is relevant for the Google contextual media platform, and in the second case, it is the promotion of goods using advertising on the Yandex.Direct platform and in popular social networks.
Since the advertising formats of Google and Yandex have their own characteristics, the accompanying advertising tools differ in appearance and settings.

Retargeting tasks

Retargeting allows you to:

• Continue the user's path from the point where they left off last time, without repeating the entire path.
• Find a way to bring back potential users to your website or blog who were interested in a product or service but did not make a purchase.
• Increase conversions and boost sales.
• Offer additional products and services , including through the distribution of informational and advertising materials.
• Show new products to engage the customer in a new buying cycle.
• Increase brand awareness. Displaying ads increases brand awareness and creates a positive attitude towards the brand.
• Improve the efficiency of marketing campaigns. Using the retargeting tool, you can focus on a narrow target audience, fine-tune your advertising and thus save your budget.
• Optimize advertising costs. Retargeting services offer many display settings, including the ability to prohibit displaying ads to current customers or those who responded negatively to them. This will allow you to avoid wasting money on displaying ads to an audience that is not your target.

How to set up retargeting

Installing a tracking code. A special piece of code, called a pixel or tag, is installed on your website or app.

Collecting user data: When a user visits your site or uses your app, this code collects data about their actions.

These could be:

• page visits;
• view products;
• add to cart;
• making a purchase;
• time spent on the site;
• other actions (filling out forms, watching videos, clicking on links, etc.)

Audience creation: The collected data is used to create different audience segments (targeted user groups) based on their behavior.

For example:

• All Site Visitors: An audience that includes everyone who has visited your site;
• specific page visitors: an audience that includes only those who viewed a specific page;
• users who added an item to their cart but did not complete the purchase.

Show personalized ads. Based on the audiences you create, the advertising platform shows your users personalized ads on other sites and platforms where they are located.

Types of retargeting

Static retargeting.

Contains general information about the brand. Advertising is designed for all visitors to the site or a specific section of the web site. Such ads cover the maximum audience, but are not targeted at a specific segment of consumers.

Dynamic retargeting.

It is configured taking into account the interests of a specific user, who is offered advertising of already viewed goods and services. The main difference from static is the personal approach, so this type of customer return is mainly used by online stores.

Let's say a man was looking for a birthday present for his wife, looked at dozens of pieces of jewelry, but still couldn't decide on a purchase. After that, he would see ads for rings, earrings, and bracelets on every page he opened on the Internet.

Both types of retargeting play an important role in strategic advertising planning, allowing you to increase the effectiveness of communication with potential customers. The choice depends on the goals of the campaign.

Benefits of Retargeting

• Increased conversion. Repeated display of ads reminds users of your brand and encourages them to take the target action.
• Increased brand importance (and recognition). Constant interaction with users strengthens the brand's importance in the eyes of the audience.
• Audience segmentation: Different audiences allow you to create more targeted advertising campaigns and show ads only to those who are truly interested.
• Lower cost per conversion. 
• Flexibility: You can customize different ad variations and tests to optimize campaign results

Disadvantages of retargeting

• Requires technical setup. You need to install third-party code on your site to collect analytics.
• May be irritating. If ads are displayed too intrusively, they may be irritating to users.
• Careful audience customization: It is important to carefully approach audience segmentation so that advertising is relevant and effective.

Conclusion

1. Retargeting is a powerful tool for businesses that can significantly increase conversions and audience engagement. However, as with any advertising campaign, the key to success lies in deeply understanding your audience and creating a valuable proposition.
2. Advertising messages must be accurate , relevant and, above all, useful. This approach will not only bring potential customers back to your site, but also build long-term relationships with them, increasing brand loyalty.
3. Remember that retargeting isn’t just about following a user around the web. It’s the art of building relationships that lead to real results. Build your retargeting strategy so that every touchpoint with a user isn’t an annoying reminder, but a valuable offer that’s hard to refuse.